In an Oct. 27 research note, Haywood Securities analyst Geordie Mark reported that recent metallurgical test results indicated that Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQB) could use run-of-mine heap-leach processing of the ore it mines at its Black Pine project.
This method "would simplify operations and streamline initial capex deployment," Mark added.
He reviewed the findings from the completed phase three metallurgical work, which further derisks the project. Mark highlighted that on testing, gold recoveries averaged about 80%, in line with Haywood's estimate. This average was derived from a total of 45 conducted column tests that returned gold recoveries ranging from 44.5% to 94.8%. Average recoveries are consistent with average head grade.
"Importantly, results show relatively fast recovery times of the initial 80% of the recoverable gold in 10 days, which for us translates to good bench cycle rate potential," wrote Mark.
Liberty Gold continues its metallurgical program with a fourth phase. It will comprise 15 tests using PQ sized core material with gold grades between 0.1 and 0.2 grams per ton, "an important facet to examine when looking to project life-of-mine cutoff grades," the analyst noted.
"Importantly, results show relatively fast recovery times of the initial 80% of the recoverable gold in 10 days, which for us translates to good bench cycle rate potential."
Haywood rates Liberty Gold Buy and assigns it a CA$2.75 per share target price, "an attractive valuation," according to Mark. In comparison, the explorer is currently trading at about CA$1.23 per share.
Looking forward, Mark wrote, "We await the upcoming preliminary economic assessment on Black Pine (due Q4/21), which, along with ongoing drilling updates, may represent meaningful catalysts to spur a rerate opportunity."
Also, Haywood believes Liberty Gold is a takeover target, particularly because of its oxide gold projects and relative valuation.
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Disclosures from Haywood Securities, Inc., Liberty Gold Corp., Exploration Update, Oct. 27, 2021
I, Geordie Mark, hereby express that the views expressed in this report (which includes the rating assigned to the issuer's shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my compensation was, is, or will be directly or indirectly related to the specific recommendations.
Haywood Securities, Inc. has reviewed lead projects of K92 Mining Inc., Liberty Gold Corp., Osisko Mining Corp., and Pure Gold Mining Inc. and a portion of the expenses for this travel have been reimbursed by the issuer.
Haywood Securities, Inc. or one of its subsidiaries has managed or comanaged or participated as selling group in a public offering of securities for Osisko Mining Corp. and Pure Gold Mining Inc. in the past 12 months.
